EDA Minutes 08-11-2021MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 11, 2021— 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz,
011ie Koropchak-White, Lloyd Hilgart, Jim Davidson
Staff Present: Jim Thares, Angela Schumann
1. Call to Order
Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m.
2. Roll Call
3. Consideration of additional agenda items
None.
4. Consent Agenda
a. Consideration of Approving Regular Meeting Minutes —July 14, 2021
Recommendation: Approve regular meeting minutes —July 14, 2021.
b. Consideration of Approving Payment of Bills
Recommendation: approve payment of bills through July.
c. Consideration of Approving Funding for 2021 IEDC Manufacturers Recognition
Event in the amount of $1,050
Item Removed.
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF
ITEM C. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED, 7-0.
Regular Agenda
4.c. Consideration of Approving Funding for 2021 IEDC Manufacturers Recognition Event in
the amount of $1,050
Jim Thares said that Manufacturers' Appreciation Breakfast, formerly Industry of the
Year, is a business retention effort sponsored by the Industrial and Economic
Development Committee (IEDC) and the EDA. The event is an opportunity to focus on
and celebrate the contributions of the Monticello manufacturing and industrial
community. It is held each year in conjunction with Minnesota Manufacturer's Week
(typically the first week in October). The event is proposed for early October.
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In the past, the EDA has funded a portion of the costs associated with the event, with
city staff completing the planning and organizing. Staff also secured commitments for
event sponsorships, similar to prior years, in the amount of $650 to help defray the
costs. Expenses for the event include the complimentary breakfast and table decor and
preparation, estimated at $1,700 +/-. Invitations and promotions for the event are
completed in house at minimal cost.
Thares explained that this event is Monticello's opportunity to thank its existing
manufacturers and industries and support business retention and expansion activities.
The EDA's funding support is vital to holding a successful event. Bill Tapper asked if this
was going to be a broader recognition event to include commercial businesses. Thares
said that the IEDC discussed opening the event up but ultimately decided to keep it a
manufacturing recognition event (limited to the approximate 50 +/- industries) to
coordinate with MN Manufacturer's Week.
BILL TAPPER MOVED TO APPROVE $1,050 IN FUNDING FOR THE 2021
MANUFACTURERS' APPRECIATION EVENT. MOTION SECONDED BY OLLIE KOROPCHAK-
WHITE. MOTION CARRIED, 7-0.
5. Consideration of Resolution #2021-10 Approving a GMEF Loan Agreement between
the EDA and Rustech Brewing in the amount $62,555
Jim Thares introduced Bill & Penny Burt, Rustech owners. The Burt's said that the
funding request is not for purchasing the building as that is already completed with a
Contract for Deed agreement. The total cost to build out the new area is around
$107,000 and the gap funding in the amount of $62,555 is being requested from the
EDA to purchase the new equipment. If the Burt's are unable to acquire the funds from
the EDA, they will work with the bank to finance the full amount. They have initially
spoken to the bank about the additional funds needed for the equipment and the bank
is open to the financing but they're trying to determine the best route to go. Thares
clarified that this is a legitimate expansion that does meet the gap requirements.
Thares said he had previously met with the Burt's and asked for additional
documentation to further clarify the financing sources and uses for the proposal and
that it may be prudent to table the item until staff has an opportunity to further review
those materials once they are submitted. The extra time will be helpful to get the final
details in order.
BILL TAPPER MOVED TO TABLE TO THE NEXT MEETING. MOTION SECONDED BY LLOYD
HILGART. MOTION CARRIED, 5-0. ABSTAINED — 2, TRACY HINZ & JON MORPHEW.
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6. Consideration of TIF Pre -Application from Headwaters Development for Affordable
Housing Development Proposal on EDA Owned Land, Country Club Manor, Outlot A
Jim Thares said that Headwaters Development, Lakeville, MN, has submitted a TIF Pre -
Application and concept multi -family development proposal on the 16.7-acre Country
Club Addition site along 7th Street West. The EDA has owned this property for some time.
Headwaters is proposing to develop a 100-unit affordable senior (age 55+) apartment
building in the western portion of the site and 60 twin -home units (30 pad sites) on the
eastern half of the parcel. The 100-unit apartment building will be completed in two
phases: 60 units in phase 1 and 40 units in phase 2. The townhomes will be targeted to
the senior owner and rental market. Those units will be single story structures consisting
of 1,200 square feet +/- per unit with attached two stall garages. The total unit count in
the first phase of development is 120 (60 + 60) or 7.3 units per acre.
Headwaters is an experienced developer, and the City of Monticello recently had a
positive development experience with them as they completed the Willows Landing
Assisted Living facility located at 9872 Hart Boulevard.
The 2020 Housing Study indicates a there is a sizeable demand for affordable housing
units, approximately 145 to 175 units. The Headwaters proposal would help meet this
demand, especially for seniors (55+). Ultimately, staff defers to the EDA regarding the
proposed concept and the use of TIF assistance to support the development.
Mike Hoagberg, President, Headwaters Development, introduced himself, saying that
they have been extremely happy to be part of the Monticello community. He briefly
touched on the focus of this project and explained that it's kind of an extension of Willows
Landing into the community for the long-term. They are focused on age targeted multi-
family living. They have a passion for providing high quality living options for seniors. This
development will be designed for the active senior. They are proposing a sizable
affordable component to this, including 40% affordable units.
Bill Tapper said he's concerned about selling the west end of the property until the future
interchange is determined. Hoagberg said that they initially had the design flip-flopped
but once they finished the wetland delineation, it was clear that the topography of the
site would dictate various concept adjustments now reflected in the most recent plan.
Angela Schumann said the Monticello 2040 guide plan recognizes the Orchard Road
location for a future interchange. The rationale is that there is not enough developable
land area at County Road 39, and it would not support the cost for the interchange. There
are also various alignment considerations so it was determined that the NW area would
be more feasible. Hilgart said that he concurs with that, and he doesn't think having an
interchange is viable at the County Road 39 location since there isn't enough land to
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support it.
Jon Morphew asked about whether they had taken the noise of the interstate into
consideration. Hoagberg said that they have developments in other communities next to
highways without issues. He said they design the structures with that in mind. They are
prepared to go into full application and move forward quickly. What they're looking for
tonight is whether there is a consensus to move forward.
The consensus from the EDS is to continue to move forward with this application from
Headwaters. Hoagberg said the goal, provided everything moves along smoothly, is to
start with construction in the spring of 2022.
7. Consideration of Resolution #2021-11 Authorizing the 2022 HRA Special Benefit
Property Tax Levy in the Amount of $388,000 and the General Fund Budget in the
Amount of $425,000
Jim Thares said that Staff is asking the EDA to consider Resolution #2021-11 authorizing
the 2022 HRA Special Benefit property tax levy in the amount of $388,000 and the EDA
General Fund Budget in the amount of $425,000. The proposed tax levy is an increase of
$21,700 over the 2021 certified levy. In percentage terms, it is 5.9 percent increase.
Thares explained that the proposed budget reflects the efforts and the resources
needed to effectively carry out the EDA's Work Plan goals and overall mission of
facilitating economic development, redevelopment and housing activities that expand
the tax base, increase employment opportunities, and create a vibrant economy.
Some of the 2021 Work Plan activities underway right now, will carry over into 2022.
They include Block 52 redevelopment efforts such as assembly of additional land and/or
demolition activities, marketing of the Block 34 and Cedar -Garden Center sites,
continuation of a Downtown Facade Improvement Grant Program (estimated additional
cost of $100,000), industrial development land acquisition(s) and potential strategic
land acquisition in the core downtown to facilitate redevelopment as opportunities
arise. The 2021 EDA Workplan is attached as supporting documentation to this report.
TRACY HINZ MOVED TO APPROVE RESOLUTION #2021-11 (NOTING THAT THIS IS
ACTUALLY #2021-10) AUTHORIZING THE 2022 SPECIAL BENEFIT HRA PROPERTY TAX
LEVY IN THE AMOUNT OF $388,000, AND THE EDA GENERAL FUND AMOUNT OF
$425,000. MOTION SECONDED BY BILL TAPPER. MOTION CARRIED, 7-0.
7.5. Consideration of Accepting Quote for Architectural Services related to Facade
Improvement Grant Program
Jim Thares said that staff received a Facade Improvement Grant submittal from
Hammer's Hair Lounge that is considered "nearly complete". One of the essential
missing items is the architectural sketch -rendering for the fagade improvements. The
Hammer's building, located at 144 Broadway, has not yet had an architectural rendering
completed for the facade program. As a reminder the EDA had previously authorized
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Cuningham Architects to produce renderings of each building facing Broadway in Block
35 as a method establishing an acceptable improvement standard.
Thares further explained that the architectural rendering is needed as outlined in the
fagade program guidelines to keep moving forward on the Hammer's Hair Lounge
proposal. The former architect, Cuningham, recommended Mr. Olson and believes that
he can serve the EDA well in the required fagade improvement program design process.
Staff also believe that having Mr. Olson available to provide guidance and feedback on
project design may be useful as other developments are proposed in the downtown
area.
To move forward with Hammers' proposed facade upgrades, staff is asking the EDA to
accept the quote from Shawn Olson, Architect, in the amount of $990 and an hourly
rate of $75.00 per hour for additional, as needed, consulting services for architectural
review and guidance. Schumann said based on experience, she estimates approximately
5-6 additional hours may be needed. Jim Davidson said it would be safe to say not to
exceed $1,500. Lloyd Hilgart felt the not to exceed should be higher and proposed
$2,000.
BILL TAPPER MOVED TO APPROVE THE QUOTE FOR ARCHITECTURAL SERVICES RELATED
TO THE FACADE IMPROVEMENT GRANT PROGRAM FROM SHAWN OLSON, ARCHITECT,
IN THE AMOUNT OF $990 FOR THE ARCHITECTUREAL RENDERING AND NOT TO EXCEED
$2,000 FOR ADDITIONAL CONSULTING SERVICES FOR ARCHITECTURAL REVIEW AND
GUIDANCE. MOTION SECONDED BY JON MORPHEW. MOTION CARRIED, 7-0.
Jim Davidson said that when staff goes back to determine an hourly rate when working
with the architect that he wants to see a definition of what hourly means to them. He
would also like to suggest having a half-hourly rate as those rates can add up quickly and
for instance, a phone call doesn't typically take an entire hour.
8. Economic Development Director's Report
Jim Thares reviewed the Economic Development Director's Report included in the
agenda packet.
Thares said that Granite City Real Estate, is holding an open house and tour of the new
residential Rivertown Suites on Thursday August 26 at 3:30 p.m. They are inviting all
EDA members and staff to the event.
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9. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:14 P.M. MOTION SECONDED BY
JIM DAVIDSON. MOTION CARRIED, 7-0.
Recorder: Beth Gree 418
Approved: August 11, 2021
Attest:
s, Economic Development Director
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